ASEAN Strengthens Cross-Border Digital Payment in an MoU Signed during the G20 Summit
PRESS RELEASE NO.65/SP/TKMG20/11/2022
G20 COMMUNICATIONS AND MEDIA TEAM
Marves - Nusa Dua, November 14, 2022 – Indonesian President Joko Widodo praises cooperation on the implementation of cross-border digital payment in five ASEAN countries: Indonesia, Singapore, Thailand, Malaysia, and the Philippines. The signing of the memorandum of understanding proves that they are one step ahead compared to other countries.
"I support the expansion of this regional payment connectivity initiative to the global level as a concrete form of the implementation of cross-border payment roadmap enhancement of the G20 countries," said President Joko Widodo in virtual remarks at the signing ceremony of the Memorandum of Understanding (MoU) on Advancing Regional Digital Payment Connectivity held in Bali, Monday (14/11/2022).
The President said digital payment across ASEAN countries is a concrete manifestation of the commitment to digital transformation which is one of the G20 countries’ agreement points and is the key to sustainable economic recovery, making it strong, inclusive, and collaborative.
"The ease of access to payment will have a major impact on the economy, especially on tourism, trade, and MSME sectors. It will accelerate a stronger and more inclusive economic recovery," said President Joko Widodo.
After his remarks, the five ASEAN countries signed a memorandum of understanding (MoU) on Advancing Regional Digital Payment Connectivity. The MoU was signed By Indonesia’s Central Bank Governor Perry Warjiyo, Malaysia’s Central Bank Governor Nor Shamsiah, Singapore’s Central Bank Governor Ravi Menon, Thailand’s Central Bank Governor, and the Philippines’s Central Bank Deputy Governor.
Perry Warjiyo in his opening remarks said that the signing of the MoU on cross-border payment system connectivity between the five ASEAN countries is a dream come true. The signing is a legacy that will be passed on to the next generation and rewrite history.
"Today’s (event) is the third agenda of the G20. What we are witnessing today is not only the signing of a memorandum of understanding but also the rewriting of history, the history of the digital era. This is central banks’ dream that has long wanted to be realized," he said.
Perry said that there are three advantages to be achieved from this cross-border digital payment connectivity. First, there is a commitment to help the materialism and regional payment connectivity, moving from bilateral to mutual-vibe cooperation.
"Standardized QR, fast payment, and local currency will soon be connected. Wherever we go to ASEAN countries, we can use QR codes. We can use QR Indonesia Standard which is now applied in Thailand and will soon be applied in Malaysia, Singapore, and the Philippines. That would be a very fast and easy payment”.
“Second, the MoU signed today realizes the hopes of all Southeast Asian countries people, numbering up to 500 million people. Most of that number are women and young people. We make a legacy through digitization to help women and young people. We create connections not only for money but also for a better life," said Perry.
Third, Perry continued, the agreement reached by the five ASEAN countries is a first step to enter a bigger digital world, starting from Asia to the global world. "We also discussed about central bank management and Central Bank Digital Currency (CDBC) in the future," said Perry.
Meanwhile, Revi Menon and Nur Shamsiah praised Perry Warjiyo's leadership in realizing the cross- border digital payment connectivity. It was initiated two years ago and has just been realized now when Indonesia holds the G20 Presidency.
Likewise, several industry players present at the signing of the MoU were proud and grateful as the MoU gave them a new hope. Cross-border payment, according to them, makes transactions easier and faster.
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